My husband filed for bankruptcy in 2020 due to a scam, but we’ve been eligible for FHA loans since his discharge date in October. We’ve had bad luck with FHA and want to qualify for a conventional loan. We’re frustrated with Wells Fargo, our current lender, who keeps giving vague answers about our eligibility. We’ve checked our financials and believe there’s nothing holding us back except for past bankruptcy. Should we switch lenders, maybe to a credit union or a mortgage broker? We’re looking for the best course of action to secure a conventional loan.
The discharge date doesn’t mean the bankruptcy isn’t on his credit report. It can stay there for 7-10 years. Wells Fargo is decent with mortgages, so consider what issues you’ve had with FHA.
We’ve faced several issues with FHA, including denials due to HOA approvals and property conditions. We’re becoming disillusioned with FHA financing.
Those FHA requirements are normal for the protection of buyers. You should find a local mortgage broker and drop Wells Fargo.
You can apply with multiple lenders simultaneously. Shop around until you find one that works for you. Try local credit unions, brokers, and online lenders to find the best rates.